Investors See Safe Harbor in Swiss Franc Annuities

Despite a recent pact between Switzerland and the United States to share tax evasion information, Swiss franc fixed annuities have been attracting a lot of U.S. dollars of late. Sources estimate that Americans have been putting about $2 billion annually into the Swiss insurance instruments, due to the falling dollar, inflation fears and the need to protect assets from creditors.

It’s no wonder. While U.S. fixed deferred annuities yield about 2 percent to 3 percent, Swiss franc fixed annuities have generated a total return of more than 8.5 percent annually over the past five years, according to Swiss Guard International, a Zurich-based brokerage firm. Of course, this factors in currency appreciation against the U.S. dollar...

Registered Rep: Investors See Safe Harbor in Swiss Franc Annuities